*Surprise ! * New taxes make stuff cost more.

legislatureThe mainstream media and their lefty politico allies are perpetually hollering about “fairness” in the tax code.  *Those people who have accumulated all that cash need to have MORE of it taken from them — and given to US. *

Every time taxes are part of the debate, we small-government advocates make the point that monkeying with the tax code causes a chain-reaction, ripple-effect felt by every demographic group represented in our economy.  Typically, we get ignored and the changes get steam-rolled through.  And typically, we get to point to the economic havoc the changes create and say ‘We told you so.”

Well, the folks at the Fayetteville Observer are apparently stunned to learn that the new state sales tax on entertainment offerings will make stuff cost more.  Statists can argue that entertainment is a luxury, and not a necessity.  Sure it will cost more for Johnny to take his girl Suzy out to the movies. This tax change will cause more people to forego spending money on entertainment.  It will also likely take more money out of the pockets of people like movie theatre owners — making it harder for them to hire new employees, keep existing ones, or even keep their doors open.

If they close their doors, that’s even less tax revenue local, state, and federal bureaucracies can sink their claws into.

Remember, this little bit of tax “reform” was pushed through by a GOP-controlled legislature.  You know, the conservative revolution. The party of small government.  The same group that defended itself against Bill Barber’s Moral Monday arguments by proudly pointing out that they spent $400 million more in this budget than Bev Perdue did in her last budget. 

It’s amazing that our conservative revolutionaries on Jones Street couldn’t find enough to get the bureaucracy’s spending levels below the last budget’s totals.  Especially when ALL of this stuff is still being funded. A Youth Advocacy and Involvement Office? A NC Council for Women? A Human Relations Commission?  A state-funded office of Non-Public Education?  

Take more money out of our pockets.  Keep funding crap like that. 

There is all kinds of empirical evidence throughout history suggesting that cutting taxes increases government revenue.  Likewise, there is plenty of evidence out there suggesting that budgets CAN be balanced by cutting spending.

But doing any of that requires courage.  It requires elected leaders concerned more about the welfare and future of our state and nation than winning the next election and furthering a political “career.”


4 thoughts on “*Surprise ! * New taxes make stuff cost more.

  1. I’m with you Brent.Nice article! My hope on the reasons the tax code is changed is to pay off our Federal debt for the numerous items (I.e federal extension for jobless claims) that the state has encurred. I’ve bookmarked you!

    Happy New Year!

  2. A big part of the problem has been that the NC House has been controlled by a Big Government Republican who is in the hip pocket of the special interests, Thom Tillis. Thank God that Tillis will be gone from the General Assembly next year, and maybe we can get some genuine conservatives in leadership. Let’s just hope we do not have to suffer through having him in the US Senate.

  3. Why should we give movie goers a tax break? Why give luxury car and boat buyers a tax break? Most sensible economists agree that consumption taxes are the better way to raise revenue. Why not have a simple flat tax on all sales that is low, but taxes every transaction once and just do away with the income tax? It looks to me like the legislature is going in the right direction here. Not far enough, but at least they are going in the right direction. They reduced, slightly, the income tax rate and broadened the sales and income tax bases.


    1. If those from the rentier class get richer, and those from the middle class get poorer, then this so-called ‘tax reform’ is not moving us in the right direction.

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